Gulliver | Airline subsidies in the Gulf

Feeling the heat

By M.R.

ALLEGATIONS of unfair competition are nothing new for the Gulf's carriers. The region’s big three airlines—Emirates, Etihad Airways and Qatar Airways—have long been accused of receiving government subsidies by their rivals in Europe and America. But supporting evidence has been in short supply. That apparently changed yesterday, when a group of airlines disclosed details of “obvious and massive” Gulf-carrier subsidies totalling $42bn since 2004. The findings have been submitted to the American government in a 55-page dossier urging a re-think of Washington’s open-skies treaty with Qatar and the United Arab Emirates (UAE). It contends that the Gulf carriers—which compete with American rivals on international routes—should only enjoy unfettered access to America's airports if they operate on a level playing field.

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